Spokane Valley,
WA— January 29, 2009 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended
December 27, 2008.
For the second quarter of fiscal 2009, Key Tronic
reported total revenue of $47.0 million, compared to $50.8 million in the same
period of fiscal 2008. For the
first six months of fiscal 2009, total revenue was $95.2 million, compared to
$95.4 million in the same period of fiscal 2008.
Net income for the second quarter of fiscal 2009 was $0.1 million or $0.01 per diluted share, compared to $1.6 million or $0.16 per diluted share for the same period of fiscal 2008. For the first six months of fiscal 2009, net income was $0.5 million or $0.05 per diluted share, compared to $1.8 million or $0.18 per diluted share for the same period in fiscal 2008.
Results for the second quarter of fiscal 2009
included a charge of approximately $0.8 million or $0.08 per diluted share for
goodwill impairment as required under Statement of Financial Accounting
Standards No. 142 regarding Goodwill and Other Intangibles.
Results for the second quarter of fiscal 2008 included a gain of
approximately $1.0 million or $0.09 per diluted share from the sale of a
facility.
“We are pleased with our operating performance for
the second quarter, which was in line with our forecasts,” said Jack Oehlke,
President and Chief Executive Officer. “While the global economic situation
continues to create slowdowns among some of our existing programs, we saw an
increased revenue contribution from new customer programs.
In the third quarter, we expect more of our promising new customer
programs to move into production.
“Moving into the second half of fiscal 2009, the
pipeline of prospective new programs remains robust despite the challenging
economic environment. Our
world-class facilities and unique set of capabilities continue to give us strong
competitive advantages. In coming periods, we expect to win new business and
further diversify our customer portfolio across a wide range of industries.”
Business Outlook
For
the third quarter of fiscal 2009, the Company expects revenue in the range of
$42 million to $46 million, with earnings in the range of breakeven to $0.02 per
share.
Conference
Call
Key Tronic will host a conference call
today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A
broadcast of the conference call will be available at www.keytronic.com
under “Investor Relations” or by calling 800-219-6110 or +1 303-262-2130. A
48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000
(Reservation No. 11124551). A replay will also be available on the Company’s
Web site.
About
Key Tronic
Key Tronic is a leading contract manufacturer
offering value-added design and manufacturing services from its facilities in
the United States, Mexico and China. The
Company provides its customers full engineering services, materials management,
worldwide manufacturing facilities, assembly services, in-house testing, and
worldwide distribution. Its
customers include some of the world's leading original equipment manufacturers.
For more information about Key Tronic visit: www.keytronic.com.
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as ‘aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets’ or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to quarterly revenue and earnings during fiscal 2009. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to the future of the global economic environment and its impact on our customers and suppliers, the accuracy of customers’ forecasts; success of customers’ programs; timing of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; and the other risks and uncertainties detailed from time to time in the Company’s SEC filings.